|
 |
|
Source:
www.mom.gov.sg |
|
GOVERNMENT ACCEPTS NATIONAL
WAGE COUNCIL¡¯S RECOMMENDATIONS FOR 2006/2007 |
|
¡¡ |
|
|
The Government has accepted the National
Wages Council (NWC)¡¯s wage recommendations for 2006/2007. |
|
Agree with wage recommendation |
|
The Government notes that last year, total
wages increased by 4.3% as a result of our healthy economic growth.
Basic wages also grew by 3.1% last year compared to 2.7% in 2004. |
|
On the other hand, productivity growth fell
from 6.9% in 2004 to 1.9% in 2005. |
|
Consequently, the growth in real wages (both
total and basic wages) outpaced productivity growth in 2005, a reversal
of the trend of the preceding three years when productivity growth was
higher. |
|
The Government agrees with the NWC that our
built-in wage increases should continue to lag productivity growth, so
that Singapore¡¯s cost competitiveness can be sustained. |
|
The Government also accepts the NWC¡¯s
recommendation that companies make greater use of variable bonuses to
reward workers. Companies that are performing well should grant higher
variable bonuses in recognition of workers¡¯ contribution. |
|
Support wage restructuring effort,
especially in building up the MVC |
|
The Government also agrees with the NWC that
wage restructuring efforts should be sustained, especially in building
up the Monthly Variable Component (MVC). |
|
Of the three key recommendations of the
Tripartite Taskforce on Wage Restructuring, the MVC has the lowest
adoption rate, particularly among the SMEs (15.4%) and non-unionised
establishments (17%). |
|
It supports the NWC¡¯s call for companies to
build up the MVC quickly. The Government will continue to work together
with the unions and employers to press on with wage restructuring. |
|
Welcome NWC¡¯s recommendations to help low
wage and older workers |
|
The Government welcomes NWC¡¯s call to
companies to put in place wage systems and employment arrangements to
facilitate the employment and reemployment of older workers. In this
regard, companies are urged to make use of WDA¡¯s ADVANTAGE scheme. |
|
The Government also supports the NWC¡¯s
recommendation that in granting wage increases, companies give higher
increases for low wage workers. Companies should also actively redesign
jobs to enhance the productivity and earning capacity of low wage
workers. |
|
Support the stepping up of skills
training and upgrading |
|
The Government agrees with the NWC¡¯s
recommendation that companies should step up training and skills
upgrading, in particular for older workers, low wage workers and
contract workers. |
|
The Government will continue to give
priority to skills training and upgrading of workers through WDA¡¯s
programmes in collaboration with the unions and employers. |
|
Conclusion |
|
Our strong tripartite partnership among
employers, unions and the Government is a competitive advantage for
Singapore. |
|
With this strong mutual trust and
cooperation among the tripartite partners, the Government is
confident that the NWC¡¯s recommendations will be successfully
implemented by companies and unions. |
|
More..... |
|
Source:
www.mom.gov.sg Press Release 17
May 2006 |
|
 |
|
Important
Notice |
|
Our FrontPage
Editions are a historical record of our Web site and reflect
the changing of the times, and also of our Web site through
time. We do not and will not update the links and stories on
these FrontPages even if they have become obsolete. |
|
FrontPage Edition: Fri 19 May 2006
All rights reserved
